Dentsu Group is reportedly mulling the sale of its Tokyo headquarters worth approximately US$2.9 billion as it aims to shift to a more "decentralised corporate structure" that is reliant on teleworking, Nikkei Asia reported. Dentsu's spokesperson confirmed the news to MARKETING-INTERACTIVE, adding that it is seeking to streamline its excess office capacity, and plans to lease most of the building even after the sale.
Dentsu's Tokyo headquarters is in the waterfront district of Shiodome and according to the spokesperson, only 20% out of the 9,000 employees are still working from the office while the rest are working remotely. The spokesperson added that there will be no leadership changes and declined to comment on the buyers. Nikkei Asia reported that potential buyers include financial institutions, property developers and investment funds. Dentsu joins other Japanese companies including Avex which are relooking at plans for their Tokyo headquarters as a result of the new working habits that have risen due to COVID-19.
The agency launched a comprehensive review last August and said in a recent statement that results of the review will be presented next month. It will also make further announcements as additional decisions requiring disclosure are made. The comprehensive review resulted in dentsu slashing about 12.5% of its total international headcount in a bid to lower operating expenses, simplify the business for both clients and its operations, and enhance the efficiency of its balance sheet.
Meanwhile just last week, dentsu international folded Vizeum under iProspect, with the new entity led by global president Amanda Morrissey. The new agency will be launched through a phased market plan over a three-month period and is targeted to complete by 31 March this year.
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